What is an "audit" in terms of accounting?
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Corporations - 3 Answers
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Answer 1 :
Basically it is just where a third party (anyone that did not prepare the accounts in the first place but usually an accountancy firm) looks at the books at (say) year end and checks them to verify that there have been no errors or illegal transactions.
Answer 2 :
It is usually an unbiased review of a company's financial statements to check that the financial statements have been properly prepared, and normally performed by a firm of accountants. The result of the audit is communicated in written form and contains the opinion of the person or firm that carried out the audit.
Answer 3 :
Please be advised that an audit can be a multitude of things. There are Internal Auditors, External Auditors: There are Governmental Auditors. An Audit is an examination of financial records (internal) & (external).
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